Operations and Supply Chain Management The Core

FORECASTING chapter 3 91
10. If the tracking signal for your forecast was consistently
positive, you could then say this about your forecasting
technique.
11. What would you suggest to improve the forecast
described in question 10?
12. You know that sales are greatly influenced by the
amount your firm advertises in the local paper. What
forecasting technique would you suggest trying?
13. What forecasting tool is most appropriate when closely
working with customers dependent on your products?
Answers to Practice Exam 1. Strategic forecast 2. Independent demand 3. Demand management 4. Average demand
for the period, trend, seasonal elements, cyclical elements, random variation, and autocorrelation 5. Time series analysis
6. Decomposition 7. 118 units 8. Zero 9. 13 10. Biased, consistently too low 11. Add a trend component. 12. Causal
relationship forecasting (using regression) 13. Collaborative Planning, Forecasting, and Replenishment (CPFR)